NEO flashed buy signal after the 40% correction as the buyers emerged when the token started looking for a greener space. NEO went through a 40% correction which saw the coin drop from $26 to $16 as we reported in our NEO crypto news.
Despite the massive losses, the TD Sequential index presented a buying signal on the daily charts. If the 100-day exponential moving average continues to hold, the cryptocurrency has a shot of increasing to $18.5 or even higher. While most cryptocurrencies continued suffering from the September Effect, NEO flashed buy signals that could allow it to regain the lost control. The cryptocurrency endured a huge correction period after making a new yearly high but since then, the token dropped by more than 40%. It went from trading at $26 to a low of $15.9.
While the investors are shivering in fear given the huge losses incurred over the past month, the 100-day exponential moving average was able to keep the prices at bay. The trend after the indicator is acting as a support and could serve as a rebound zone. Based on the 1-day charts, the TD index provided a buying signal in the form of a red nine candlestick. The spike in demand for NEO around the current price levels could validate the bullish formation. If this happens, the cryptocurrency will head for a one to four daily candlesticks upswing. On the way up, the 50-day exponential moving average at $18.5 could act as a resistance.
More importantly, the setup trend line will represent the most significant hurdle for the cryptocurrency to overcome. The bullish impulse to the $21.5 region could come in the form of the right shoulder of head and shoulders pattern which seems to be forming in the same timeframe. If this resistance level could reject the price action, NEO will drop to the neckline of the formation at $16.5 Going through the support barrier will signal a 36% correction towards $10.6. The idea of the head-and-shoulders forming on the charts could seem a little crazy but with the current market conditions, it’s not unlikely to see rising prices before more losses occur.
It is imperative to pay close attention to the 100-day exponential moving average so getting off from this metric will push NEO to the $18.5 or higher. In the meantime, breaking the level could send this cryptocurrency to the 200-day exponential moving average at $13.5.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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